How Long Must One Wait to Qualify for a Mortgage After Bankruptcy

The primary purpose for filing a bankruptcy is to obtain a “fresh start”. That is, to be in a position to move forward without the weight of old unsecured debt dragging down ones ability to move forward.

Often, the question is asked, How long do I have to wait to qualify for a new mortgage after filing bankruptcy? The general rule of thumb is as follows:

FOR CHAPTER 7

1) 4 years from the date of discharge or the dismissal date for a conventionalloan.

2) 2 years from the date of discharge for an FHA/HUD loan; and

3) 2 years from the date of discharge for a VA loan.

FOR CHAPTER 13

1) 2 years from the discharge date or 4 years from the dismissal date for a convention loan.

2) 1 year of the payout must elapse and payment performance must be satisfactory. Buyer must receive permission from the court to enter into mortgage loan for FHA/HUD loan.

3) Same as #2 above for a VA loan.

It should be noted that these are not hard and fast rules because the credit history, income and other factors may come into play. It is recommended that you regularly monitor your credit reports and consult with a professional with any questions or concerns about rebuilding your credit.

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